Financial Institution Letter
FIL-7-2007
January 26, 2007Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
REPEAL OF CERTAIN REPORTING REQUIREMENTS
Final Rule Repealing Part 349
Summary: The FDIC Board of Directors has approved the attached final rule repealing FDIC Part 349,
Reports and Public Disclosure of Indebtedness of Executive Officers and Principal Shareholders to a State
Nonmember Bank and its Correspondent Banks. The final rule became effective on December 22, 2006.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Compliance Officer
Executive Officers and Principal Shareholders
Related Topics:
Regulation O (12 CFR 215); FFIEC Annual Report
on Indebtedness of Executive Officers and Principal
Shareholders to Correspondent Banks (FFIEC 004)
Attachment:
Final Rule: 12 CFR Part 349 (71 FR 78337,
December 29, 2006- PDF)
Contact:
Examination Specialist Karen J. Currie at
KCurrie@FDIC.gov or 202-898-3981
Highlights:
• On October 13, 2006, the President signed into law Public
Law No. 109-351, the Financial Services Regulatory Relief
Act of 2006 (the Act). Section 601 of the Act eliminated
statutory provisions that required reporting indebtedness of
executive officers and principal shareholders to a financial
institution and its correspondent bank. Although the FDIC
maintains authority under other provisions of law to collect
information regarding insider lending, the FDIC does not
believe that such reports contribute significantly to the
effective monitoring of insider lending or the prevention of
insider abuse. To eliminate unnecessary burden, the FDIC
has repealed its regulation.
• The repeal of Part 349 does not change the substantive
restrictions on loans by depository institutions to their
executive officers and principal shareholders or loans to
executive officers and principal shareholders of their
correspondent banks. The repeal merely eliminates the
reporting requirements and public disclosure of insider loans.
• The elimination of these reporting requirements does not limit
the authority of the FDIC to take enforcement action against
an institution or its insider for violations of these insider
lending restrictions.
• On December 18, 2006, the FFIEC discontinued the Annual
Report on Indebtedness of Executive Officers and Principal
Shareholders to Correspondent Banks (FFIEC 004).
• On December 11, 2006, the Board of Governors of the
Federal Reserve System published amendments to 12 CFR
215 (Regulation O) in the Federal Register (71 FR 71472)
removing certain reporting requirements regarding
extensions of credit to bank insiders. Requirements under
Regulation O are made applicable to state nonmembers by
Section 18(j)(2) of the Federal Deposit Insurance Act.
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2007/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained via the FDIC's Public Information
Center (1-877-275-3342 or 703-562-2200).
FIL-7-2007
January 26, 2007Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
REPEAL OF CERTAIN REPORTING REQUIREMENTS
Final Rule Repealing Part 349
Summary: The FDIC Board of Directors has approved the attached final rule repealing FDIC Part 349,
Reports and Public Disclosure of Indebtedness of Executive Officers and Principal Shareholders to a State
Nonmember Bank and its Correspondent Banks. The final rule became effective on December 22, 2006.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Compliance Officer
Executive Officers and Principal Shareholders
Related Topics:
Regulation O (12 CFR 215); FFIEC Annual Report
on Indebtedness of Executive Officers and Principal
Shareholders to Correspondent Banks (FFIEC 004)
Attachment:
Final Rule: 12 CFR Part 349 (71 FR 78337,
December 29, 2006- PDF)
Contact:
Examination Specialist Karen J. Currie at
KCurrie@FDIC.gov or 202-898-3981
Highlights:
• On October 13, 2006, the President signed into law Public
Law No. 109-351, the Financial Services Regulatory Relief
Act of 2006 (the Act). Section 601 of the Act eliminated
statutory provisions that required reporting indebtedness of
executive officers and principal shareholders to a financial
institution and its correspondent bank. Although the FDIC
maintains authority under other provisions of law to collect
information regarding insider lending, the FDIC does not
believe that such reports contribute significantly to the
effective monitoring of insider lending or the prevention of
insider abuse. To eliminate unnecessary burden, the FDIC
has repealed its regulation.
• The repeal of Part 349 does not change the substantive
restrictions on loans by depository institutions to their
executive officers and principal shareholders or loans to
executive officers and principal shareholders of their
correspondent banks. The repeal merely eliminates the
reporting requirements and public disclosure of insider loans.
• The elimination of these reporting requirements does not limit
the authority of the FDIC to take enforcement action against
an institution or its insider for violations of these insider
lending restrictions.
• On December 18, 2006, the FFIEC discontinued the Annual
Report on Indebtedness of Executive Officers and Principal
Shareholders to Correspondent Banks (FFIEC 004).
• On December 11, 2006, the Board of Governors of the
Federal Reserve System published amendments to 12 CFR
215 (Regulation O) in the Federal Register (71 FR 71472)
removing certain reporting requirements regarding
extensions of credit to bank insiders. Requirements under
Regulation O are made applicable to state nonmembers by
Section 18(j)(2) of the Federal Deposit Insurance Act.
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2007/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained via the FDIC's Public Information
Center (1-877-275-3342 or 703-562-2200).